If you run a small business, you might think energy brokers are only for big companies with massive electricity bills. They’re not. But whether it’s worth using one depends on a few things.
What does an energy broker actually do?
An energy broker compares rates from multiple suppliers on your behalf. Instead of you calling each supplier individually, the broker does it in one go and presents the options.
They handle the Letter of Authority (which gives them permission to request quotes), the comparison, and usually the switching process too.
How much does it cost?
This is where it gets complicated. Most brokers are paid by the supplier through a commission built into your energy rate. You don’t receive a separate invoice.
The problem is that many brokers don’t tell you how much that commission is. It could be 0.5p/kWh or it could be 5p/kWh. On a small business using 50,000 kWh per year, the difference between those two is £2,250 per year.
Always ask your broker to show you their fee on every quote. If they won’t, find one who will.
At Edge, our fee is listed on every quote in your deal room. For businesses under 250,000 kWh, it’s up to 1p/kWh.
When is it worth it?
Use a broker if:
- Your contract is coming up for renewal and you don’t have time to call multiple suppliers
- You’ve been with the same supplier for years and have never compared
- You’re on an out-of-contract rate (you’ll almost certainly save money)
- You want someone to track your renewal dates so you don’t roll over again
You might not need one if:
- You’ve already compared the market yourself recently
- Your consumption is very low (under 10,000 kWh per year) and the savings would be minimal
- You have a specific supplier relationship you want to maintain
How much can a small business actually save?
It depends on your current rate and consumption. But businesses that have been rolling over their contract for 2+ years typically save 15–30% when they compare the market.
For a small business spending £3,000 per year on energy, that’s £450–£900 in savings. For a business spending £10,000, it’s £1,500–£3,000.
The comparison itself is free. If the numbers don’t work, you don’t switch.
What to do next
If you want to see whether you’re overpaying, it takes two minutes. Sign an LOA and you’ll have quotes in your deal room within 48 hours. No commitment, no cost if you don’t switch.
For a fuller picture of how brokers work and what to watch out for, read how energy brokers actually save you money. If you’d prefer to weigh up going straight to a supplier, see energy broker vs going direct.
Want to talk about your energy contract?
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